The construction industry in Cyprus is entering a phase of uncertainty, both for private and public projects, regarding how much they will ultimately cost, as in recent months there has been an increase in basic building materials, due to the ongoing war in Iran and the appreciation of products produced from oil or transported by sea.
For example, for the construction or maintenance of a road, in April on an annual basis an increase of 10.70% has been recorded in the price index of asphalt pavement and 20.34% in asphalt concrete. This means that initial budgets are likely to prove inadequate over time and contractors, if price increases continue, will find it difficult to complete the projects they undertook through contracts.
In addition, the supply chain continues to come under pressure, especially under the weight of geopolitical risks and disruptions in key maritime transport routes, leading to higher material costs.
After the recent military operations and without an agreement yet being reached on the Strait of Hormuz, the prices of some basic building materials, according to data announced by the Statistical Service, have recorded a new monthly increase.
The price index of construction materials for the month of April 2026 amounted to 120,67 units (based on 2021=100), recording an increase of 0,64% compared to the previous month. Compared to the corresponding month of the previous year, the index recorded an increase of 1.38%.
By main product category, increases were recorded in electromechanical items (2.29%), metal products (1.81%), products of wood, insulation, chemicals and plastics (1.76%), minerals (1.59%) and mineral products (0.06%). For the period January-April 2026, the index recorded an increase of 1.00% compared to the corresponding period of 2025.
Materials that require high energy to produce, such as cement, steel, ceramics, and insulation, are increasing due to rising energy costs. Heavy machinery (excavators, cranes) run on fuel, increasing the cost per hour of work. The current situation comes in addition to the already significant effects caused by the previous crisis due to the pandemic and especially the war in Ukraine, which led to extensive increases in energy, fuel, transport and material prices.
According to the analysis of the data of the Statistical Service by Fileleftheros, price increases were recorded in April on an annual basis in basic materials required for the construction industry: crushed sand for concrete (2.57%), gypsum (1.38%), marble (0.87%), granite (0.74%), slabs, mosaics and concrete bricks (2.43%), tiles (4.70%), wood products 1.59%, cabinets and countertops (2.10%), doors and windows (2.14%), thermal insulation materials (1.94%), paints and solvents (0.29%), water tanks (1.64%), plastic pipes (8.37%), PVC doors and windows (0.45%), iron and steel products (1.16%), structural mesh (-2.45%), iron railings (4.04%), roofs, sheds and metal drywall installation parts (2.71%), steel pipes (8.04%), stainless steel sanitary ware and kitchen utensils (0.81%), aluminium doors and windows (-0.14%), Locks, hinges and handles (9.43%), electrical equipment (5.13%), cables (9.43%), sockets, switches, fuses and insulators (3.22%), burners and boilers (2.35%), central heating radiators (-2.74%), air conditioning appliances (-2%), solar and electric water heaters (1.45%), elevators (4.91%).
